Reform Timely for Sustainable Economic Growth

Addis Ababa September 11/2018 Ethiopia has been building a size able economy in Sub-Saharan Africa. This economic development is expected to be further expanded supported by the new reform that herald a strong synergy.

It is estimated that Ethiopia’s total GDP will reach 100 Billion USD in the coming two or three years, said Zemedeneh Negatu Chairman of Fair Fax Africa Fund.

The reform that Ethiopia has introduced few months ago has captivated the attention of citizens raised their hope for a better future.

Measures taken to encourage reconciliation and freedom of expression, to open up the economy as well as widen the political space are few of the reforms that the Horn African country has witnessed over the past four months.

“Today in Sub-Saharan African countries there are only three countries whose GDP is   100 billion USD including South Africa, Nigeria and Angola. Ethiopia is about to join that club, which means it becomes a complex economy.   In my view, if we do the right thing and policy review I think we can build a strong economy for the coming few years”, he stated.

Zemedeneh said that the reform that the country has introduced has gained the attention of many global companies.

“During the last couple of months when I traveled to London and US I have seen positive initiatives from the global companies to engage Ethiopian’s business activities,” he pointed out.

Dr. Costantinos Berhutesfa, a former senior policy adviser at the United Nations told ENA the reform is timely as it will help to stimulate the economy.

The past four months, the country has witnessed ‘tremendous change’ and the peoples’ hope has risen.

“The reforms in several sectors set priorities for the economic development of the country in accordance to the economic social and political transformation polices charted out by the ruling party.  The ruling party seriously concentrated on the mission of the state in strengthening the public and private sector in a more inclusive manner”, he said.

The decision to open up state-owned enterprises for domestic and foreign investors has come at the right time, which he said would help to resolve problems related to financial deficits.

Appreciating the moves taken by the government so far, Costantinos, who is Senior Vice President of African Humanitarian Action, urged the need to work on improving capacity of the private sector.

“An efficient and development-oriented private sector provides the nourishment, which these markets require to grow and function effectively. The markets themselves   provide the credit ingredients, which the private sectors require to grow, expand and contribute to development”, he added.

Costantinos said that economic marginalization and unfair distribution of wealth were the major sources for flaring up the public grievances resulting in a change of the leadership.

“It is obvious that there is unfair distribution of wealth compounded by wastefulness in macro-economic management, corruption, looting of state finances and the marginalization of the private sector that could have provided entrepreneurial resources and employment to the multitude of unemployed youth. The whole scenario boiled down to a popular unrest and anti-government protests that culminated in loss of hundreds of lives, public and private property,” he said.

Costantinos lauded Prime Minister Abiy Ahmed’s policy of inclusiveness which led to the countrywide reform in political, economic and social areas.

“The year that has just ended was a year in which Ethiopians and citizens of Ethiopian origin year were invited to participate in Ethiopian politics and two million strong Diaspora who can cater their skills to highly industrial nation to participate in Ethiopia’s economic development,” he said.

The reform that gathered Ethiopians across the world irrespective of political opinion have started to see opportunities to contribute share to the country’s development, which displays the future is bright for the country.